MIRA INFORM REPORT
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Report No. : |
347109 |
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Report Date : |
27.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG YUELONG SEWING EQUIPMENT CO., LTD. |
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Registered Office : |
No. 505 Jidong Road, Huandong Street, Zhuji, Zhejiang Province 311800
Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
20.10.2004 |
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Com. Reg. No.: |
330681000005751 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling computer embroidery machine & accessories
and textile machinery; importing and exporting commodities and technology. |
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No. of Employees : |
330 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2014 stood as the largest economy in the world, surpassing the US for the first time in modern history. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, in July 2005 China moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate.
The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2014 more than 274 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development.
Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company Name & address
ZHEJIANG YUELONG SEWING EQUIPMENT
CO., LTD.
NO. 505 JIDONG ROAD, HUANDONG STREET
ZHUJI, ZHEJIANG PROVINCE 311800 PR CHINA
TEL: 86 (0) 575-87276937/87276935
FAX: 86 (0) 575-87276936
***Note: The given
address (Xiaji Village Huandong Street Zhuji City Zhejiang) was the former one.
EXECUTIVE SUMMARY
Date of Registration : october 20, 2004
REGISTRATION NO. : 330681000005751
LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
chen tianchi (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 60,000,000
staff :
330
BUSINESS CATEGORY : manufacturing & trading
REVENUE :
CNY 102,480,000 (JAN. 1, 2015 TO JUN. 30, 2015)
EQUITIES :
CNY 128,010,000 (AS OF JUN. 30, 2015)
WEBSITE : www.cnyuelong.net
E-MAIL : yuelong-chen@hotmail.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.36 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect of
its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not yet be determined
Not yet be determined
LEGAL STATUS &
HISTORY
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
330681000005751 on October 20, 2004.
SC’s Organization Code Certificate No.:
76799763-5
SC’s Tax No.: 330681767997635
SC’s registered capital: cny 60,000,000
SC’s paid-in capital: cny 60,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2013-09-30 |
Registered Capital |
cny 30,000,000 |
cny 60,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Chen Tianchi |
51 |
|
Chen Tianlong |
49 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Chen Tianchi |
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Supervisor |
Chen Tianlong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART
& BACKGROUND
Name %
of Shareholding
Chen Tianchi 51
Chen Tianlong 49
MANAGEMENT
Chen Tianchi, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Chen Tianlong, Supervisor
----------------------------------------------
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling computer embroidery machine & accessories and textile machinery;
importing and exporting commodities and technology.
SC is mainly engaged in manufacturing and selling computer embroidery
machine & accessories and textile machinery.
SC’s products mainly include:
Flat Embroidery Machine Series
High-speed Embroidery Machine Series
Single Head Machine Series
Cap Embroidery Machine Series
Tufting Embroidery Machine Series
Towel Embroidery Machine Series
Cording Embroidery Machine Series
Mixed Towel Embroidery
Bridge-type Laser Machine Series
SC sources its materials 100% from domestic market. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly U.S.A.,
Southeast Asia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Client*
------------------
Visual Wireless Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 330
staff at present.
SC rents an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal: ( ) Excellent ( )
Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent payment record: None in our database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31,
2014 |
|
29,860 |
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Notes receivable |
0 |
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Accounts receivable |
25,730 |
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Advances to suppliers |
0 |
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Other receivable |
0 |
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Inventory |
48,120 |
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Non-current assets within one year |
0 |
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Other current assets |
9,190 |
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------------------ |
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Current assets |
112,900 |
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Fixed assets |
31,000 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
35,700 |
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Deferred income tax assets |
0 |
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Other non-current assets |
22,270 |
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------------------ |
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Total assets |
201,870 |
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============= |
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Short-term loans |
62,000 |
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Notes payable |
0 |
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Accounts payable |
18,120 |
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Welfares payable |
0 |
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Taxes payable |
-5,270 |
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Advances from clients |
0 |
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Other payable |
1,430 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
76,280 |
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Non-current liabilities |
0 |
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------------------ |
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Total liabilities |
76,280 |
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Equities |
125,590 |
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------------------ |
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Total liabilities & equities |
201,870 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2014 |
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Revenue |
235,480 |
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Cost of sales |
202,520 |
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Sales expense |
21,680 |
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Management expense |
15,980 |
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Finance expense |
3,660 |
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Profit before tax |
7,060 |
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Less: profit tax |
0 |
|
7,060 |
Financial Summary
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Unit: CNY’000 |
As of Jun. 30,
2015 |
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Total assets |
223,610 |
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------------- |
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Total liabilities |
95,600 |
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Equities |
128,010 |
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Jan. 1, 2015 to Jun.
30, 2015 |
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Revenue |
102,480 |
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Profits |
2,420 |
Important Ratios
=============
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As of Dec. 31,
2014 |
As of Jun. 30, 2015 |
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*Current ratio |
1.48 |
-- |
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*Quick ratio |
0.85 |
-- |
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*Liabilities to assets |
0.38 |
0.43 |
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*Net profit margin (%) |
3.00 |
2.36 |
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*Return on total assets (%) |
3.50 |
1.08 |
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*Inventory / Revenue ×365 |
75 days |
-- |
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*Accounts receivable / Revenue ×365 |
40 days |
-- |
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*Revenue / Total assets |
1.17 |
0.46 |
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*Cost of sales / Revenue |
0.86 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loans of SC appear average.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.96 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.71.64 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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|
-- |
NB |
New Business |
-- |
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This score serves as
a reference to assess SC’s credit risk and to set the amount of credit to be
extended. It is calculated from a composite of weighted scores obtained from each
of the major sections of this report. The assessed factors and their relative
weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.